A divorce comes with financial considerations that could drastically change your life. The process begins with financial disclosures, where you and your spouse exchange information about your assets and debts. Your property will be divided between you and your spouse depending on whether it is community or separate. You must also consider child support and spousal support payments, as you may be required to pay or could be awarded either. Discuss your case with an experienced attorney who understands the complexities of family law and finances to ensure that you make informed decisions throughout your divorce.
To schedule a consultation with one of our San Diego lawyers at Claery & Hammond, LLP, please call us at (310) 817-6904 or contact us online.
Understanding the Financial Implications of a Divorce
Navigating a divorce can be challenging, with many financial implications. You might find yourself going from a two-income household to just one, or you may be unable to return to the same standard of living you had before the divorce if only one spouse worked during the marriage.
Aside from income regulations, property ownership also changes in divorce. Assets and debts are divided. Both parties’ finances may be affected as they renegotiate living arrangements while taking on new financial responsibilities.
Understanding the financial implications of divorce can help couples make informed decisions before starting proceedings.
Knowing Your Financial Situation Concerning Assets and Debts
Knowing your financial situation is an integral part of getting a divorce, especially when considering assets and debts. Assets can comprise of bank accounts, stocks, life insurance policies, retirement accounts, pensions, and even cars or homes you own. Debts include any mortgages, credit cards, student loans, or other liabilities you are borrowing money on.
Early in the divorce process, you must disclose your finances to your spouse and vice versa. Exchanging this information facilitates smooth proceedings and a fair division of property.
Exploring the Different Categories of Assets and Debts
In California, the law recognizes two classes of assets and debts that must be considered when a couple is going through a divorce – community property and separate property.
Community property is any asset or debt acquired during the marriage. It is considered jointly owned by both spouses and legally must be divided equally upon divorce. Conversely, separate property remains with the original spouse who owns, earned, or incurred it before the marriage. Generally, these assets and debts are not subject to the law of equal division nor treated as joint-owned by both spouses.
Knowing how these two types of assets are categorized can be very helpful when navigating a divorce settlement in California.
Calculating Child and Spousal Support Payments
Calculating child support payments in California can be a complicated process. Fortunately, families can access the online child support calculator to generate an estimate of what their payments would be. In some instances, a judge may choose to deviate from the guidelines if they have valid reasoning. Factors such as parents' gross incomes, time spent with each parent, and childcare expenses are considered when determining the payment amount.
Concerning spousal support, California judges can award two types: temporary (provided during divorce proceedings) and long-term (provided for financial assistance after the divorce has been finalized).
Spousal support helps ensure that each spouse can provide for basic necessities during or after the divorce. Generally, spousal support is awarded to the lower-earning spouse. The payment amount will depend on several factors, including the couple’s standard of living during the marriage.
Speaking with an Attorney About Your Case
Divorce is not easy and is especially complicated because assets, debts, income, and other financial matters must be considered. When starting proceedings, you must have appropriate documentation concerning your property and accounts. Not only that, but you might also need to get accurate valuations of your belongings and must make necessary financial disclosures. If this feels overwhelming, don't worry. A family law attorney can provide valuable assistance in this process. They can protect your rights and interests, allowing you to focus on moving forward.
If you need help with your divorce in San Diego, please contact Claery & Hammond, LLP at (310) 817-6904.